Premium segment apartments see price rise in second quarter
By Trang Vu
[Vietnam Investment Review] The second quarter of 2017 witnessed a fall in the number of apartments for sale and apartments sold, as well as a rise in the prices of the premium segment, as reported by commercial property and real estate services firm CBRE.
In the second quarter of 2017, there were 8,086 apartments for sale in the market, representing an increase of 23 per cent compared to the same period last year, but a reduction of 14 per cent on-quarter.
Notably, most new apartments for sale were offered on the next open sale of some big projects. 68 per cent of new apartments for sale were located in western and southwestern Hanoi, and 20 per cent were supplied by a new project in Ecopark urban area.
Regarding segments, the apartments in the mid-range price segment accounted for the highest proportion of total sales in the past few years. In particular, this segment accounted for 55 per cent of the total batch of new apartment for sale in the period.
There were a total of 4,650 apartments sold in the second quarter of 2017, a reduction of 24 per cent on-quarter.
Explaining this decrease, a representative of CBRE said, “In the first quarter of 2017, there was a wide range of apartments for sale, thus, the number of apartments sold was about 15-20 per cent higher than in the corresponding period of 2016. To prepare for each open sale, developers need time for the compile detailed plans, therefore we may have to wait for about three months for a new open sale and the next surge in apartment sales. Besides, when looking at the figures of the last two years, the number of apartments sold in the second quarter of this year is on the medium level, not too low.”
Moreover, there were few changes in the average home price in the primary and secondary markets. Notably, in this quarter, prices only rose in the premium segment by 1-3 per cent in the primary and secondary markets.
CBRE’s representative said that the premium segment has diversified clients in comparison with some other segments.
Target customers of the premium segment may be investors who purchase apartments for the purpose of leasing or foreigners who purchase luxury apartments for their high living standards.
Besides, most apartments in the premium segment are located at prime location, and they hold huge investments in their design, administration or facilities, boosting their selling price in both markets by a significant margin.